Mobilizing Underutilized Labor Resources in Aging Societies

Shahar Cohen, Alessandro Di Filippo (), Giuseppe Di Giacomo (), Gabriele Gurrieri (), Pia Heckl (), Helmut Rainer (), Sebastian Schirner () and Clémence Taisne ()

No 60, EconPol Policy Reports from ifo Institute - Leibniz Institute for Economic Research at the University of Munich

Abstract: The demographic shift toward older populations, driven by rising longevity and falling fertility, is shrinking the working‑age population in advanced economies and putting downward pressure on growth, productivity, and innovation. To counter these trends and sustain long‑term economic performance, targeted measures are needed to mobilize untapped labor supply. This policy report focuses on three core levers to expand labor supply: increasing women’s labor force participation, prolonging the working lives of older individuals, and improving the labor‑market integration of migrants. Across each area, it identifies the main barriers to fuller participation and reviews the available evidence on successful and unsuccessful policy interventions. By drawing on cross‑country experience, the report provides a comprehensive overview of strategies to strengthen labor‑market inclusion and enhance economic resilience in aging societies. By aligning family policies, pension incentives, and migration frameworks, countries can better mobilize labor supply and mitigate the fiscal and economic pressures of demographic change.

Date: 2026
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